ARB Holdings. JSE: ARH

ARB shares

Background of ARB

  • Founded in 1980, ARB Holdings listed in the Industrial Goods and Services sector of the Johannesburg Stock Exchange (JSE) in 2007. The company’s main subsidiary is ARB Electronic Wholsalers, which operates out of 18 branches in all nine of South Africa’s provinces, making it one of southern Africa’s largest electronic product distributors today.

  • ARB has a diversified portfolio, providing electrical and lighting products to the mining, construction, industrial, retail, domestic and parastatal markets. Amongst a range of acquisitions, the group has a 60% stake in leading lighting importer Eurolux.

  • It has exclusive rights to distribute technologies such as high-efficiency transmission conductors, bimetallic anti-theft earthing, CHINT low voltage products and Nexans Olex cable products in the Southern African Development Community. ARB Wholesalers is split into electrical and lighting divisions, which generate billions of rands worth of revenue. Meanwhile, ARB’s corporate division owns 16 properties valued at approximately R 181 million, as well as an IT Solutions division.

  • The group has been lauded for remaining cash generative during recent tough trade conditions, managing to maintain ARB share prices and make good returns on capital investments.

  • The group has a market cap of just over R 1 billion, with dividends consistently yielding approximately 4%.

ARB Shares Growth Driver

  • ARB’s electrical division is by far the group’s biggest generator of revenue and profit. Despite continued delays in infrastructure spend and lack of capital expenditure in Eskom’s rural electrification programme, the division has managed to keep revenue relatively stable, although there was an 11% drop in operating profits in 2015.

  • The lighting division has introduced a variety of new products which contributed to an increase in revenue. Although overheads have been well-controlled by management, trading margins were impacted by a competitive environment and volatile exchange rate.

  • ARB plans to increase its profits through organic growth and strategically aligned value acquisitions. The electrical division envisages market consolidation through an expansion of the branch network, as well as an introduction of higher margin products. The lighting division is also entering into new markets, while the corporate division aims to diversify through the purchase of new trading and distribution businesses.

  • Meanwhile, the company is planning to open two new Connect stores in South Africa, bringing the total number up to 20. ARB has also increased its online footprint through the establishment of an online store which contains a database of ARB’s electrical and lighting products.

ARB Group Investor Tip

  • ARB share prices recorded good performance in the last six months of 2015, with headline earnings per share increasing by 12.1%. Despite difficult trading conditions, the company has identified new branch openings and product extensions as a strategy which should bode well for the growth of the group, while the rest of Africa is also being targeted. The forecast for investors who buy ARB shares is therefore promising.

ARB Major Shareholders

Burke Investment Trust, Burke A R and the Alan Burke Trust.

  • Sector

    Industrials

  • Industry

    Electrical Equipment
  • Sub industry

    Electrical Components

How to buy ARB Group Shares

  • ARB : How to buy ARB Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy ARB Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in ARB Holdings and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase ARB Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in ARB.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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